{
  "id": 6233838,
  "title": "Sugar Mills Claim Cash Shortage To Pay Farmers As New Crushing Season Nears",
  "url": "https://urgent.news/2026/09/08/sugar-mills-claim-cash-shortage-to-pay-farmers-as-new-crushing-season",
  "topic": "business",
  "section": "Business",
  "published": "2026-09-08T04:20:59.000Z",
  "source": {
    "name": "ProPakistani",
    "slug": "propakistani",
    "url": "https://propakistani.pk/2026/09/08/sugar-mills-claim-cash-shortage-to-pay-farmers-as-new-crushing-season-nears/"
  },
  "original_language": "en",
  "account": "Sugar mills in Pakistan are grappling with a significant cash shortfall as the new crushing season approaches, according to the Pakistan Sugar Mills Association (PSMA). The PSMA highlighted that large stocks of unsold sugar are consuming substantial funds, while the government has acknowledged the surplus but has yet to approve export plans. Exporting surplus sugar, the association argued, would enable mills to generate cash and inject foreign exchange into the economy. With just two months left before sugarcane harvesting and the onset of the crushing season, mills are finding it challenging to cover essential expenses such as plant maintenance, machinery repairs, farmer payments, and employee salaries. The industry anticipates that this season's crop could yield around 8 million metric tons of sugar. However, the existing surplus of approximately 1 million metric tons may pose storage issues for the new season's production. Mills are also facing increased production costs due to higher sugarcane prices, taxes, wages, and the cost of imported chemicals, all while sugar prices have remained below production costs. The PSMA noted that surplus stocks are piling up in mill warehouses and buyers are scarce in the domestic market, adding to the mills' financial strain as they continue to pay bank markups on the funds tied up in unsold sugar. International sugar prices, currently presenting an advantageous opportunity for exports, could generate between $700 million and $800 million in foreign exchange, the association stated.",
  "summary": "Sugar mills are facing a severe cash shortage ahead of the new crushing season as large unsold sugar stocks continue … Read More The post Sugar Mills Claim Cash Shortage To Pay Farmers As New Crushing Season Nears appeared first on ProPakistani .",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}